Question 3

Bongo Bonanza has the following inventory data:

July 1 Beginning inventory 50 units at $120

6 Purchases 290 units at $112

14 Sale 240 units @ $150/unit

20 Purchases 150 units at $115

30 Sale 140 units @ $152/unit

Assuming that a periodic inventory system is used, what is the ending inventory on a FIFO basis, and the Gross Profit?

A.) Ending Inventory: $13,100; Gross Profit: $13,800

B.) Ending Inventory: $12,650; Gross Profit: $14,200

C.) Ending Inventory: $14,080; Gross Profit: $11,500

D.) Ending Inventory: $21,080; Gross Profit: $ 8,810